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City of Elk River, Minnesota <br /> Coin-Tainer Co., LLC.Application Review <br /> October 9,2014 <br /> Page 4 <br /> Business Eligibility <br /> In addition to having an eligible project a business must also meet certain criteria before it is deemed eligible to <br /> receive forgivable loan funds. According to the Economic Development Microloan Fund Policy, to be eligible for a <br /> microloan a business must meet the following <br /> 1. Business must be a for-profit corporation, partnership or sole proprietorship; <br /> After reviewing Coin-Tainer Co., LLC's application materials the company appears to be a for-profit <br /> enterprise. <br /> 2. Business must be a small business as defined by the small business administration; <br /> Based upon the application materials provided by the applicant, the company appears to meet the definition <br /> of a small business as defined by the small business administration. We are waiting on additional <br /> information from the applicant to confirm this status. <br /> 3. Business must have a positive net worth; <br /> His important to note that the latest(full years)financial statements provided by the company are for the year <br /> ending December 31, 2013. In addition we have received partial year information through July 31, 2014. As <br /> such this determination is being made based upon the available information at that time. Based upon a <br /> review of the financial information submitted by the company, Coin-Tainer Co., LLC had a positive net worth <br /> in December of 2012, a negative net worth as of December 31, 2013, and a positive net worth as of July 31, <br /> 2014. <br /> 4. Business must be an industrial, manufacturing,or technology-based industry; <br /> A review of Coin-Tainer Co., LLC's application materials confirms that the company fits into the description <br /> of an industrial, manufacturing or technology based industry. <br /> 5. Religious, political,casino,sports facilities and pornographic enterprises are not eligible to use the <br /> Economic Development Forgivable Loan Program. <br /> Coin-Tainer Co., LLC does not appear to be a religious, political, casino, sports facilities or pornographic <br /> enterprise. <br /> Financial Feasibility <br /> According to the forgivable loan program guidelines the financial feasibility criterion are meant to assess availability of <br /> funds, private involvement,financial packaging and cost effectiveness. These criteria are: <br /> 1. Appropriate ratio of private funds to microloan funds <br /> Stonesthrow Companies, LLC is intending to acquire the existing building that Coin-Tainer Co., LLC is <br /> currently occupying and continue leasing that facility to Coin-Tainer Co., LLC. Acquisition of the building is <br /> estimated to be$2.6M and Stonesthrow Companies, LLC is planning to finance the purchase through a <br /> contract for deed. Stonesthrow Companies, LLC has requested tax abatement assistance from the City of <br /> Elk River and Sherburne County to assist with the acquisition. The microloan funds of$200,000 would be <br /> used to purchase equipment with a total project cost estimate for the two companies to be$2.8M.Assuming <br /> Stonesthrow Companies, LLC receives tax abatement assistance from the City and County, approximately <br />